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4. Outline and assessment of the evidence<br />

Assumption 15: State subsidies improve the quality, equity and sustainability of <strong>private</strong><br />

school provision<br />

No. of studies = 3: Pakistan (3)<br />

*POSITIVE (3)<br />

Summary assessment of evidence: Small number of medium quality studies (including one high<br />

quality) in a single country context with consistent findings supporting the assumption.<br />

Overall strength of evidence: WEAK<br />

Headline finding:<br />

The evidence on subsidies is limited in scope, size and context (Pakistan), with two of<br />

three studies of a single quasi-voucher programme written by the same authors. This<br />

limited but consistent evidence indicates that conditional and targeted subsidies can raise<br />

the quality of inputs and perhaps outputs (test scores) in specific contexts, and set equity<br />

conditions such as increased female enrolment. However, it does not provide insights into<br />

whether subsidies improve the sustainability of <strong>private</strong> school provision.<br />

The evidence on state subsidies to <strong>private</strong> <strong>schools</strong> was examined by looking at a number of<br />

mechanisms – including the creation of state-sponsored free school places at <strong>private</strong><br />

<strong>schools</strong>, the provision of tax incentives for LFPs, voucher schemes and cash transfer<br />

schemes. However, only a narrow range of literature fitted the search criteria and this<br />

focused almost exclusively on voucher-style subsidies which allocated money on a perstudent<br />

basis.<br />

Supporting evidence<br />

The main evidence supporting this hypothesis in relation to quality is focused on the<br />

specific context of LFPs (primary, middle and secondary levels in rural and urban areas)<br />

receiving public cash subsidies under the Foundation Assisted Schools programme run by<br />

Punjab Education Foundation in Pakistan (Barrera-Osorio and Raju 2010, 2011). However it<br />

is noted that this novel scheme is heavily supported and monitored by donors, which raises<br />

the question whether it is donor influence or state collaboration that is the main factor in<br />

the positive outcomes of the programme.<br />

Under this scheme, <strong>private</strong> <strong>schools</strong> receive a per-pupil subsidy with both admittance to<br />

the programme and remaining within it being tied to specific criteria: <strong>schools</strong> must be<br />

above a certain size, meet minimum standards in terms of staffing and infrastructure and<br />

be providing education at such a level of quality that a set proportion of their students are<br />

able to pass an academic qualification test. Once in the programme <strong>schools</strong> can no longer<br />

charge user fees and must maintain their academic standards in annual tests, staffing and<br />

infrastructure (Barrera-Osorio and Raju 2011). The programme has been found to have had<br />

significant impacts on inputs such as enrolment levels at programme <strong>schools</strong> as well as on<br />

the number of teachers, classrooms and blackboards. However, the authors note that the<br />

increase in programme school enrolment may come from students transferring from other<br />

<strong>schools</strong> rather than previously underserved groups enrolling. Increases in the education<br />

resources were not matched by improvements in either PTRs or pupil–classroom ratios<br />

which may be better proxies for quality than absolute numbers of resources (Barrera-<br />

Osorio and Raju 2011). Attempts to analyse this programme in terms of improvements in<br />

actual education outcomes based on annual tests are inconclusive in terms of absolute<br />

improvements in student performance. There is clear evidence that programme <strong>schools</strong><br />

39

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